ACME Solar Holdings Limited , a leading integrated renewable energy player, has secured a significant 450 MW-1800 MWh assured peak power project, reported robust financial results for Q2, and received an AA-/Stable rating for its subsidiary's bank facilities. The company's strategic moves in the renewable energy sector and its financial performance were discussed in detail during its recent earnings call.

Key Highlights

1. New Project Win: ACME Solar was awarded a 450 MW-1800 MWh assured peak power SJVN FDRE-IV project at a tariff of INR 6.75/unit for 25 years. This project, focusing on peak power supply, will integrate 300 MW of solar capacity with approximately 1800 MWh of Battery Energy Storage System (BESS) technology.

2. Financial Performance: The company reported a total revenue of INR 601.00 crore for Q2, marking a 104.00% year-on-year increase. EBITDA stood at INR 534.00 crore, up by 108.00% with a margin of 89.00%.

3. Operational Metrics: ACME Solar generated 153.90 crore units in Q2, up 134.00% year-on-year. The capacity utilization factor improved to 24.10% from 22.20% last year, with both plant and grid availability above 99.00%.

4. Debt Optimization: The company achieved an interest rate reduction of approximately 75 basis points on existing INR 2,080.00 crore debt for operational projects. Additionally, one operational project was refinanced with INR 1,100.00 crore at an optimized interest rate of around 8.40%.

5. Credit Rating Upgrade: ACME Solar received an upgrade to AA- rating from both CRISIL and ICRA, reflecting improved financial stability.

Project Pipeline and Strategy

ACME Solar's total portfolio now stands at around 7,390 MW, including 13.5 GWh of BESS capacity and 5,180 MW of PPA signed capacity. The company has placed orders for 2 GWh BESS with global suppliers, taking the total BESS orders to 5.1 GWh.

Market Outlook

The renewable energy sector in India has shown significant growth, with 35 GW of new capacity additions from January through October. This expansion has enabled renewable sources to contribute approximately 27.00% of India's total energy generation.

Regulatory Updates

1. Reduction in GST rates on key solar and wind project equipment from 12.00% to 5.00%.
2. Introduction of renewable energy consumption obligation for designated consumers.
3. CERC's third amendment of connectivity and GNA regulations, introducing solar and non-solar access to accommodate BESS in the grid.

Challenges and Opportunities

While the company faces some challenges related to PPA signings and transmission line delays, it remains optimistic about the growing demand for renewable energy, especially in peak power supply projects.

AA-/Stable Rating for Subsidiary

ICRA has assigned an ICRA AA-/Stable rating to long-term bank facilities of ACME Dhaulpur Powertech Private Limited, a wholly owned subsidiary of ACME Solar Holdings Limited. The rating applies to a 300 MW ISTS solar power project in Jaisalmer, Rajasthan, for its Rs 990 crore term loan facility from Indian Renewable Energy Development Agency Limited (IREDA). This is the second AA- rating for the project, following a similar rating from CRISIL.

The plant has been operational since January and is achieving a capacity utilization factor of 29.05% since commissioning. ICRA cited experienced sponsor, revenue visibility, strong debt coverage metrics, timely payments and strong counterparty as key strengths. The project is supported by a 25-year Power Purchase Agreement with Solar Energy Corporation of India Limited. The stable outlook reflects steady cash flow visibility from the long-term PPA and satisfactory generation performance.

ACME Solar's focus on BESS technology and peak power projects, coupled with its strong financial performance and strategic project wins, indicates a positive outlook for its future growth in the renewable energy market.

ACME Solar Holdings Limited , a leading player in India's renewable energy sector, has reported robust financial results for the second quarter of fiscal year 2026, marked by significant revenue growth and strategic expansion into battery storage projects.

Financial Highlights

The company's Q2 FY26 performance showcased impressive year-on-year growth:

ACME Solar's net profit stood at 115.00 crore, with a PAT margin of 19.00%.

Operational Performance

The company reported strong operational metrics for Q2:

• Electricity Generation: 153.90 crore units (up 134.00% YoY)
• Capacity Utilization Factor (CUF): Improved to 24.10% from 22.20% last year
• Plant and Grid Availability: Above 99.00%

Capacity Expansion and Project Wins

ACME Solar has made significant strides in expanding its renewable energy portfolio:

• Commissioned 378 MW capacity, with the remaining 72 MW expected to be completed by early January
• Won new projects totaling 720 MW, including:
  • 50 MW firm and dispatchable renewable energy (FDRE) project with Tata Power
  • 670 MW solar plus battery energy storage system (BESS)
• Total portfolio now stands at 7,390 MW, including 13.50 GWh of battery storage capacity

Battery Storage Initiatives

The company is making substantial investments in battery energy storage systems:

• Placed orders for 5.10 GWh of BESS capacity
• Plans to operate 1 GWh of battery storage on a merchant basis from Q4 FY26
• Expected to generate annual EBITDA of 170.00 crore from merchant battery operations

Financial Management

ACME Solar has strengthened its financial position:

• Secured financing of 7,000.00 crore for 680 MW projects
• Achieved credit rating upgrades to AA- from both CRISIL and ICRA
• Net operational debt to EBITDA ratio stands at 4.30x
• Days sales outstanding reduced to 27 days

Future Outlook

With its expanded portfolio and strategic focus on battery storage, ACME Solar is well-positioned to capitalize on India's growing renewable energy market. The company's investments in BESS technology and its ability to secure competitive tariffs for new projects indicate a strong growth trajectory in the coming years.

As India continues to push for increased renewable energy adoption, ACME Solar's diversified portfolio and focus on innovative solutions like firm and dispatchable renewable energy projects are likely to drive its future growth and market position.